New Zealand still negotiating to form a government – caretaker govmt will remain for now

<p>
New Zealand PM Hipkins and Christopher Luxon have agreed the Governor
General will be advised to extend current caretaker government
arrangements until the new government is formed</p><p>New Zealand is inching closer towards forming a government after the election back on October 14. </p><p>Incoming prime minister Luxon is engaged in talks with two minor parties – ACT and New Zealand First – to build a government.</p><p>New Zealand moved to a mixed-member proportional electoral system in 1996 which makes it harder for a single party to achieve a majority.

Typically, talks are led by the biggest party, in this case National, which offers policies and positions to minor parties in exchange for support.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.